Tax Software (USA)

I'm hardpressed to think of a negative that can be proven. I can tell you that if you use a standalone copy of the software on your physically secure computer that is never connected to any network, including the Internet, you're safe from prying eyes.

-- Phil Marti Clarksburg, MD

"Howard Kaikow" wrote:

Do you mean tax software that runs on your computer or on-line tax software that runs on the Web?

While it is hard to prove that either would not reveal your personal data to others, the safest bet seems to be running software on your own computer and then printing and filing a paper copy of your tax return. There is no evidence that any of the major brands of tax software are sending any data back to the manufacturer. If this computer is used by other people or is connected to the Internet through a cable modem or DSL line, you are at somewhat greater risk of data theft. In that case I would suggest keeping your personal tax data on removable drive, such as a USB memory stick, which is removed whenever you are not working on your tax return. Of course, it is rare but possible that you could have spyware on your computer that you acquired from somewhere else that is capturing your keystrokes and sending them to some third party. But that is not the fault of the tax software. In that case, you could use a computer that is never connected to the Internet to prepare and print your tax return. (No, I do not go to this length myself, but I know people who do.) At the very least you should have a firewall, such as Zone Alarm, anti-virus software and anti-spyware software. If you e-file a tax return that was prepared using software on your computer, you are trusting the company that processes the electronic return to safeguard your data. There are no reports I know of that these companies have misused personal data. If you prepare your taxes on-line I believe there is a slightly greater chance that your personal data may be compromised, but again, I have not seen any reports that personal data has been misused by any of the in-line sites that are approved by the IRS. (See

-- Vic Roberts Replace xxx with vdr in e-mail address.

Huh?

If what you mean; is there some hidden "phone home" software embedded into the program(s) that reveals personal information? Then, no. This can be easily detected by examining logs from packet sniffers and/or ethernet analyzers/monitors that many of us have to detect any such unauthorized traffic from our systems. If anyone discovered such activity, the news would quickly spread. It would become a major news item. Of course, if your computer is already infected by a virus, Trojan horse, or zombi software from other sources, then _anything_ you do or type on your computer can be revealed to others, including using any tax or financial software and any passwords you might use.

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-Ernie-

How could there be? Is there proof that using tax software doesn't increase global warming? Moderator: Proving a negative is such an exercize in futility that it would have Sir Karl Popper rolling over in his grave.